National Bank of Ukraine (NBU) has amended the regulation on credit risk exposure.
– clarified the wording and delayed the introduction of separate signs of high credit risk before the beginning of 2019;
– reduced the value of LGD in terms of calculation of credit risk for public companies (from 45% to 30%);
– resolved the issue of valuation of credit risk in SWAP operations. Set the conditions under which the credit risk on the transaction arises;
– extended list of tools to enforce the obligations of the debtor other members of the group, in particular the possibility of using financial guarantees and irrevocable standby letters of credit;
– determined that banks can use the financial statements of the borrowers, obtained from public information sources (e.g. websites of the company and SCS)
– clarified a number of requirements for monitoring the collateral;
– introduced procedure for the assessment of the credit risk of condominiums.
Changes in the regulations approved by the NBU Board resolution N5 of January 16.